SEC Chairman Atkins Announces End to Aggressive Crypto Enforcement

US Securities and Exchange Commission Chairman Paul Atkins has announced a significant shift in the agency’s approach to digital assets, marking the end of what he described as an aggressive enforcement strategy. In his remarks at the SEC Speaks conference, Atkins declared that the agency would begin drafting formal rule proposals specifically tailored to the crypto industry. This move aims to create a more transparent and collaborative regulatory environment, fostering innovation rather than treating it as a threat.

Atkins criticized the SEC’s past handling of crypto firms, noting that the agency had offered little guidance while issuing subpoenas in response to good-faith outreach. This approach, he argued, had created an atmosphere of mistrust and confusion. He pledged to end this pattern of opaque enforcement and directed SEC staff to engage more transparently with the industry. As part of this effort, new staff guidance, including FAQs addressing broker-dealer and transfer agent questions related to digital assets, has already been authorized for release.

Atkins’ vision for the future includes allowing SEC registrants to custody and trade both securities and digital assets within a single regulated environment. This unified framework could lower costs, encourage innovation, and pave the way for what he described as a “super-app” future in financial services. He also announced plans to dismantle the agency’s Strategic Hub for Innovation and Financial Technology, or FinHub, citing its narrow scope and enforcement-heavy reputation. Instead, innovation priorities will be embedded across the Commission’s full structure.

While specific rule proposals are still in development, Atkins’ speech signaled a clear departure from the agency’s previous stance. It offered the clearest indication yet that the SEC is preparing to embrace, rather than obstruct, the digital asset ecosystem. This shift is expected to bring much-needed clarity and stability to the crypto markets, which have long struggled under the SEC’s regulatory limbo.